Taxpayers are the single most significant group of stakeholders in the Nigerian tax system, so declares the National Tax Policy (NTP). Thus every effort that is directed at achieving among others:
- Simplicity, certainty and clarity as a way of that taxpayers understand and trust the tax system;
- Low compliance cost i.e. the economic costs of time required and the expense which the taxpayer may incur during the procedures for compliance can be managed at minimum levels at all times, would ensure an overall improvement in the quality of the tax system.
The NTP thus encourages the development of structures, platforms, tools and/or applications that can enhance and simplify compliance for taxpayers.
Income tax computation and or its payment need not be capital punishment (cf: Jeff Hayes). It also does not need to trigger a feeling of loss or want of control. “Many people believe that where taxes are concerned, they are victims, held hostage by an inevitable process that allows them no input, no control … where people believe that they lack control, they seldom try to assert control (Richard Carlson – Don't Sweat Guide to Taxes)”.
The reality however is that taxpayers always complain that the tax amount deducted from their pay is too high. Given that under the Pay-As-You-Earn tax regime, the employer is the collection agent for the State Internal Revenue Service of the State in which the employees are resident, the role actors in the case of corporate taxpayers involved in the process of computing tax assessed on the individual comprise the various human resource personnel, finance personnel and external tax consultants.
In developed economies, the tax authority's website is usually the first point of reference for individual tax both earned and unearned. In Nigeria, the Federal Inland Revenue service (FIRS) is the authority for monitoring collection and administration of tax in Nigeria. A tax calculator can be accessed from its website to aid tax payers determine an estimate of Nigeria tax that will be deducted from their income. Most of these online tools are only accessible via the internet.